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clock Created with Sketch. 27/05/15
21:37
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Originally posted by Nikec
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Also that is not $55milion dollars profit, you are forgetting interest repayment of roughly 13milion per annum (9mil since they get a 30% tax shield) as well as a company tax of 30% as well as royalty of 5%. The annual profit is closer to $32mil per annum on a company which has a market cap of $100 mil. Still a 32% return which is quite good."The agreement is subject to the issue of 55 million options to Taurus with a four-year term exercisable at A$0.10 each, of which 7,900,000 options were issued on 9 March 2015 with the balance to be issued on or before 31 May 2015."
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The Taurus options will hardly be a bad thing if exercised. 5 million in the kitty at 10 cents is great news and derisks Tiger to a certain extent or at least gives them a nice buffer.
